How to calculate ROI training.
A sales manager underwent a training workshop and came back with the following monthly performance.
Sales before and after : 120,000 and 140,000
Profit before and after: 12,000 and 16,800
Use return on sales as the Key performance indicator.
a) What is the total improvement? b) What is the improvement contributed by improved competency or due to efficiency? c) What is the improvement caused by the volume change? d) What is the ROI on training if the cost of training is 10,000?
Answers
a) 4,800 total improvement
b) 2,800 efficiency improvement
c) 2,000 volume improvement
d) 2800/10,000 = 28% say per month. or 336% per year.
Note: Efficiency and volume improvement has been separated.
For ROI just take the efficiency improvement in the calculation.
Arriffin Mansor 012-2786282
A sales manager underwent a training workshop and came back with the following monthly performance.
Sales before and after : 120,000 and 140,000
Profit before and after: 12,000 and 16,800
Use return on sales as the Key performance indicator.
a) What is the total improvement? b) What is the improvement contributed by improved competency or due to efficiency? c) What is the improvement caused by the volume change? d) What is the ROI on training if the cost of training is 10,000?
Answers
a) 4,800 total improvement
b) 2,800 efficiency improvement
c) 2,000 volume improvement
d) 2800/10,000 = 28% say per month. or 336% per year.
Note: Efficiency and volume improvement has been separated.
For ROI just take the efficiency improvement in the calculation.
Arriffin Mansor 012-2786282
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